Over a Third of Americans Are Spending More Due to Stress About the Economy: 5 Ways You Can Avoid It
Written by
John Schmoll
Edited by
Zuri Anderson
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The economy is currently facing headwinds in the minds of many Americans. The Index of Consumer Sentiment is down 14% year-over-year, and inflation numbers continue to concern many.
A recent LendingTree survey reveals an interesting finding: Some people are spending more due to the uncertainty. The survey found that 38% of Americans said that the stress of the current financial unease is causing them to spend more.
Here are five practical ways to avoid overspending if the unstable economy has you concerned.
Wait 48 Hours
Shopping is often an emotional experience. People spend when they’re happy and when they’re facing stress. Neither is inherently bad, but when it leads to unnecessary debt, it can be problematic.
Implementing the 24-hour rule is a common direction from most financial experts. The idea is simple. Wait 24 hours before purchasing something non-essential that you see online or in the store. If the desire for the item wanes, then you can live without it, and you save the money.
Alternatively, if you still want the item, go ahead and make the purchase. Stretching it to 48 hours helps remove more emotion, allowing you to see if you truly need the item and avoid needless debt.
Have a Fun Budget
Retail therapy is a common way to achieve happiness for Americans. The LendingTree study found 47% of Americans partake to boost their spirits. Unfortunately, this can be a costly way to elevate your mood.
You don’t have to cut retail therapy altogether, just make some tweaks. Consider creating a fun budget that won’t stress your finances. It can be a weekly or monthly amount, or a set amount that you don’t exceed when shopping. This lets you spend without regret.
Identify and Reduce Spending Triggers
Understanding why you spend is a good first step when trying to curb overspending. Certain things may trigger you to spend even when you have no plans to do so.
Common triggers include stress, boredom or celebration. This knowledge can help you know when to avoid your favorite store or retail site. You can take this a step further by reducing digital clutter that prompts you to spend.
“If you’re prone to emotional spending, your inbox and social feeds might be working against you. Unsubscribe from promotional emails, mute shopping apps and unfollow brands that trigger impulse buys. Out of sight, out of cart,” noted LendingTree.
Avoid BNPL Apps
Buy Now, Pay Later (BNPL) apps have exploded in popularity in recent years. The apps seem harmless; you get to make a purchase and spread it out over four payments. Unfortunately, the platforms make it easy to justify spending. The LendingTree study confirms this, revealing that 52% of people polled are influenced by BNPL.
The best way to avoid BNPL is if you don’t have the cash for the purchase, don’t use an app. Using a credit card can make it easier to return the item in question, if regret sets in, but if you can’t afford the item, avoiding the purchase altogether is wisest.
Replace Shopping With Something Else
Although retail therapy is a popular way to decompress, it’s certainly not the only option. There are various healthy coping mechanisms Americans can use when they feel the pull to go shopping to improve their mood.
Meditation, exercise, talking with a friend, volunteering and more are all good ways to distract yourself from the urge for retail therapy. All are free ways to boost your spirits that won’t incur needless debt.
The economy is challenging for many Americans. Spending to improve your mood is a popular way to deal with the stress, but it can be costly. Consider one of these tricks to brighten your day instead of accumulating debt.
More From GOBankingRates
